3 Top Marijuana Stocks to Watch ACB, CTST, Hexo

Even though most marijuana stocks have been having downswings, here are the top 3 of them you should watch.

Introduction

In recent months, marijuana stocks have been having multiple ups and downs. During this period, a clear trend could not be defined for the capital market performance of the industry.

However, one thing is sure: investing in a sound marijuana stock will pay off in the long run. Hence, here are our top three marijuana stocks that you should watch.

Aurora Cannabis (NYSE: ACB)

Canadian Aurora Cannabis is a major player in  the cannabis industry. The company is set to release its adjusted second-quarter earnings result by September 15.

However, forecasts have it that it should post at least $76.0 million in revenue for the fiscal fourth quarter, representing an over 50% rise from the previous quarter.

Also, there are speculations that the company should be able to post positive adjusted earnings for the same quarter. In its efforts to expand its frontiers, Aurora recently signed the Billionaire investor, Nelson Peltz, to its board.

With this, let us be looking forward to its list of potential multiple deals and the potential increased revenue base.

Aurora closed its last trading session at $6.08, with a market capitalisation of approximately $6.0 billion.

CannTrust Holdings (NYSE: CTST)

Agreed, in this industry, CannTrust cannot be exactly described as a top player. In fact, the company was one of the most affected for the recent months’ fall in marijuana stocks. However, it is making our list because of its open and sound books and the fact that now it could be a bargain.

Early this year, though, CannTrust had allegations of cultivating and selling cannabis from unlicensed facilities trailing it. The aftermath of this was severe as the company CEO, Peter Aceto, was consequently relieved of the job. As if that was not enough, CannTrust lost the Ontario Cannabis Store’s $2.20 million deal as a result, too.

Nevertheless, in spite of these, CannTrust is set for a rebound. The board has instituted a special committee to develop special alternatives for its operations.

Hexo Corp. (NYSE: HEXO)

As far as partnership deals are concerned, Hexo has really been up and doing. The company has a standing partnership deal with the big Molson Coors Brewing. Additionally, the possibility of deals with many other Fortune 500 companies are being discussed.

However, Hexo has been having some profitability issues. One of the reasons for this is its heavy investment in R & D — among other things. Thus, if Hexo will, at all, post profitable results in the fourth-quarter of 2019, it will be due to the addition of special items to its books.

Nevertheless, Hexo is on the right track. That is why we are recommending it. With a strategy focused on increasing its packaging capacity, for the fourth quarter, the company is set to double its quarter-over-quarter revenue.  Hence, Hexo is well set to improve its bottom line.

About Oluwa Solademi 19 Articles
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